Twilio price target raised to $88 from $74 at UBS

UBS raised the firm’s price target on Twilio (TWLO) to $88 from $74 and keeps a Buy rating on the shares. The bull case of a return to double-digit revs growth came earlier than expected as Twilio reported a Q3 revenue growth acceleration to 10% year over year, up from 7% y/y organic growth in the first half of 2024, with the company attributing the outperformance to strength in Messaging, email and growth initiatives related to ISVs, self-service and cross-sell, the analyst tells investors in a research note. UBS views Twilio shares as attractive for 10%+ growth potential and continued margin expansion and thinks the Investor Day event could be a catalyst if the company offers a compelling AI story and support for growth sustaining current levels.